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Posted Sat, 17 Feb 2024 22:04:04 GMT by
I am a UK tax resident and one of the beneficiaries (25%) of an overseas property. The property is currently held by an administrator of estate, who is my mom, who is not a UK resident. Q1) Do I need to report 25% of the rental income to HMRC? Q2) The administrator of estate has paid taxes for the property concerned overseas, can I claim tax relief on the rental income I report to HMRC? Q3) I did not "actually" receive the money (move the rental income to the UK) and left it to my mom overseas to support her living, do I need to report it to HMRC?
Posted Tue, 20 Feb 2024 11:46:01 GMT by HMRC Admin 8
Firstly, it would be necessary to know your residence status in previous tax year as the income form property (that we would usually handle/tax) will be your share only but this may be affected by your residence status also known as remittance basis.
If tax is suffered overseas then we need to also know the country involved to review the Double taxation agreement and who has charge of this income source.
Yes, please report the details to HMRC but please also provide the above details.  
Thank you.
Posted Wed, 21 Feb 2024 00:04:22 GMT by
Thanks for the prompt reply! I have been UK resident since Jun 2022. I started working in the UK since Oct 2022. NI and income tax have been deducted from the monthly wage. My concern is the rental income generated overseas has been kept by the administrator of the estate. The administrator paid the corresponding taxes overseas. I deem to own 25% of the property since the deceased had no will. We are happy to keep the property remain in the status of administration until the death of the administrator. I seem not to have "inherited" the 25% share until the death of the administrator. In this case, do I need to report 25% of the rental income to HMRC? Yet, official documents overseas all address to the administrator only including the overseas tax letters. My name is not on the deeds of the property nor in the government registry overseas.
Posted Thu, 22 Feb 2024 07:01:33 GMT by HMRC Admin 25
Hi Edmond Lee,
 As you have stated that you are not in receipt of any rental income arising from the overseas property then this does not need to be declared to HMRC.
If your circumstances change i.e. you start to receive income and you become a beneficiary once the administrator passes away we suggest you get in touch with us at that time.  
Thank you. 

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